The Guardian | ExxonMobil is “committed to responsibly meeting the world’s energy needs”, according to the corporate blah blah, but it is clearly not committed to allowing its shareholders to express their own opinions on the “responsibly” bit of the boast. The US oil company is off to court in Texas to try to block a vote on a resolution tabled by Follow This, a Dutch green activist investor group that would like Exxon to move faster (a lot faster) on reducing emissions.
[…]
Why is Exxon taking such a hard-headed approach? One suspects its real motive may be corporate America’s wider resentment of the growing number of shareholder resolutions being tabled these days. Exxon may see itself as striking a blow for a board’s right to manage without outside interference, especially on climate matters.
That is the point at which Follow This’s struggle to be heard should concern all shareholders, whether they agree with the proposal at hand or not. Voting rights matter, and ought to be defended as a basic way to hold cocooned boards to account. The occasional real-world confrontation with the members of the awkward squad is a useful corrective. When the activist in this case could command 27% support – a minority, yes, but not a tiny one – as recently as two years ago, it ought to be seen as outrageous that Exxon thinks it can waft away dissent by running off to court.
It would be a useful development if big fund managers rallied to Follow This’s defence. The right to table a climate proposal at an oil company is basic stuff.
